28/10/2020
Coronavirus SME Guarantee Scheme - supporting the flow of credit
Participating lenders are offering guaranteed loans on the following terms under Phase 2:
-Loans can be used for a broad range of business purposes, including to support investment.
-Borrowers can access up to $1 million in total.
-Loans are for terms of up to 5 years, and a repayment holiday is not required but can be offered at the discretion of the lender.
-Loans can be either unsecured or secured (excluding residential property).
-The interest rate on loans will be determined by lenders, but will be capped at around 10 per cent, with some flexibility for interest rates on variable rate loans to increase if market interest rates rise over time.
https://treasury.gov.au/coronavirus/sme-guarantee-scheme
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The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme is supporting up to $40 billion of lending to SMEs (including sole traders and not-for-profits) by guaranteeing 50 per cent of new loans issued by participating lenders to SMEs. The Scheme is enhancing lenders’ ability to provide ...
